highlights
You need to invest at least Rs 500 in the PPF account.
You can also avail a loan against the amount deposited in this account.
The government offers a fixed rate on the PPF account.
New Delhi. The Public Provident Fund (PPF) was created by the government with the people working in the unorganized sector in mind. Its term is 15 years. However, it can be carried forward for 5-5 years. You must do this within 1 year of the first due date. However, this is one of the best government programs that can net you a corpus of several million rupees in the long run.
PPF is an EEE category investment plan. That means you don’t have to pay any investment, interest or withdrawal taxes. You can make a maximum annual investment of Rs 1.5 lakh which is now set to increase to Rs 3 lakh. You must invest at least 500 rupees in these. Currently, 7.1 percent interest is collected on this arrangement. This is the lowest value in the last 10 years. However, after the key rate hike, the interest rates of the PPF will now also increase.
Also read this – LIC Scheme: Want 1000 rupees/month pension? So invest money in this system, you will benefit from it for life
open ppf account online
You can open a PPF account from the comfort of your own home by logging into the website of the bank where you hold the account. We explain step by step how to open a PPF account online.
- Log in to the NetBanking portal
- Choose the option to create a PPF account.
- Choose the account of your choice, Sale or Minor.
- Fill in the requested information correctly.
- Then enter the amount of money to be deposited.
- After that you will be asked for either the transaction password or OTP.
- After this process is complete, your PPF account will be created.
- Print out all the information you filled out.
- You often have to submit these details to the bank along with KYC.
Properties of PPF
This not only increases security, but also your money. Also, in an emergency, you can withdraw 50% of the amount after 6 years. Apart from that, you also get a loan against the amount deposited in the PPF account. This loan requires you to pay 2 percent more interest than the current PPF rate. That means, according to the current status, it will be 9.1 percent. You have to repay this loan within 36 months.
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Tags: business news, investments, investment and return, PPF account
FIRST RELEASED : January 27, 2023 at 10:52 a.m. CET
